DOLO -6786.19% in 1 Month Amidst Sharp Downtrend

On SEP 26 2025, DOLO dropped by 25.4% within 24 hours to reach $4.327, DOLO dropped by 3100.14% within 7 days, dropped by 6786.19% within 1 month, and dropped by 5222.82% within 1 year.

The recent performance of DOLO has been marked by a severe and sustained decline in value. Over the past month, the asset has lost 6786.19% of its value, signaling a dramatic bearish trend. The monthly decline far exceeds the 25.4% drop recorded in the last 24 hours and dwarfs the 3100.14% loss over the past week. This trajectory indicates a high level of downward momentum and investor pessimism. Analysts project that the market is reacting to underlying fundamental and technical factors that have yet to stabilize.

Technical indicators reinforce the bearish scenario currently in play. The price has moved below key support levels, with no immediate signs of reversal. The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggest continued downward pressure, with RSI reading in oversold territory, which may indicate exhaustion of the bearish move. However, without a strong catalyst or fundamental shift, the technical outlook remains deeply bearish.

Backtest Hypothesis

To evaluate the potential effectiveness of a strategy in navigating such a steep decline, a backtesting framework was proposed. The hypothesis is based on a mean-reversion model that seeks to capture short-term bounces within a broader downtrend. The strategy triggers a long position when the price closes above the 50-period simple moving average (SMA) after a 10% drop in three days. A stop-loss is placed 5% below the entry point, while a take-profit is set at 15% above entry. This model aims to filter out noise and focus on retracement opportunities within the larger bearish trend.

The strategy assumes that while the overall trend is bearish, the asset may experience temporary rebounds due to oversold conditions or short-covering. Given DOLO’s performance over the past month, the model would have entered multiple short-term long positions during brief upward corrections, each aiming to capture a portion of the retracement before the bearish trend resumes. The backtest would measure performance over a historical period that mirrors the volatility and directional bias observed in recent months.